Bank of Russia Unveils Bill on Bankers’ Business Reputation

VLADIVOSTOK. September 6. VOSTOK-MEDIA – Russa’s Central Bank and the Finance Ministry have unveiled their plans to toughen the requirements for owners and large shareholders of credit institutions.

The Central Bank and the Finance Ministry are drafting a new bill on business reputation of bankers, Elena Muzyka, a senior official at the Bank of Russia, said at Sochi 2010 Banking Forum.

The bill includes a requirement that persons with administrative or criminal history records relating to economic or violent crimes may not be appointed managing directors of banks. In addition, they should not be involved in bankruptcy of credit institutions or ruining loss-making banks, RBK daily wrote. The document also prohibits managing directors of credit institutions to refuse helping the Bank of Russia and Deposit Insurance Agency in their efforts to restore credit institutions. The regulations will also extend to those bank owners that own over 20% of shares.

The bill also provides for the imposition of penalties on banks if the information they submit to the Bank of Russia about their shareholders differs from that posted on the banks’ websites.